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Investment Strategy

FUNDS MANAGEMENT

The Fund invests its capital in companies with a significant discount in the share price relative to perceived inherent value. These companies have superior fundamental prospects, yet negative external events have attracted a flight of investors. The Fund seeks to assist investee companies to demonstrate, grow and realise their inherent value.​

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Bottom-up

Valuation

Macro

Drivers

Unique

Insights

Active

Management

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Look for companies run by passionate co-owners

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Identify large gap between market and inherent value

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Research the prevailing industry conditions

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Meet management, suppliers,customers and competitors

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Determine catalysts that could unlock inherent value

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Actively engage in implementation of strategic change

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Long-term focus beyond recent financial results

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Remain engaged with management and possibly board

Alignment with unitholders and investee firms

15% target annual return and solid track record

ESG awareness in investment selection

Performance-based remuneration and personal investment in Fund

Longer-term outlook and investment approach

Market out-performance through patient, active investing

Strong Due Diligence and Risk Management

Supporting emerging dynamic businesses

WE ARE ACTIVE INVESTORS

  • We work with management to develop and implement strategic change to improve business performance and unlock value for our Unit holders

  • We engage with all company stakeholders to achieve strategic alignment

  • We will occupy board positions where required to drive our strategy

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WE FISH IN UNCROWDED WATERS

  • We focus on microcaps flying under the radar of larger institutions​

  • We intend to keep Net Asset Value of the Fund below $50m for the foreseeable future​

  • For many of our investments we will be one of few institutional investors​

  • We believe that small, concentrated funds can generate larger long-term returns​

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WE MEET CHALLENGES THAT OTHERS AVOID

  • The Microcap companies we invest in have superior assets that are adversely impacted by non-operational externalities such as fractious shareholders, domineering directors or industry pressures​

  • Such externalities tend to cause uncertainty and under-valuation by the market, offering us an opportunity that many others don’t see

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